Malawi: Carlsberg Malawi ready for competition with any international brewer which may decide to enter the market

Carlsberg Malawi board Chairman Mathews Chikaonda has confirmed that Malawi had a 46-year-old agreement with Carlsberg to maintain the company as the sole brewer of clear beer on the local market until this year 2012, The Daily Times reported on December, 7.

However, the Ministry of Industry and Trade says it has no records in its files which show that Carlsberg indeed had such an agreement with Malawi.

Chikaonda said in an interview last week that his company is now ready for competition on the market following the expiry of the agreement.

"When Carlsberg was coming out of Denmark in 1966, there was an agreement with government that there will be no other beer brewer in the country for 46 years and that period has come to an end basically," said Chikaonda.

He said, however, Carlsberg Malawi has now built a very strong brand which can survive competition from any brewer in the world.

"In fact, when the president of Carlsberg visited the country two years ago, he was amazed that he was readily served a Carlsberg whenever he went into any bar or restaurant in the country," said Chikaonda.

He said despite the sole brewer status, Carlsberg has still faced competition from different imported brands of clear beer on the market.

He said Carlsberg Malawi has been expanding its capacity to ensure that there is enough supply to counter any competition.

"We have doubled our capacity in the last year and we are poised to take on any competition that comes our way," said Chikaonda.

He said the company is also going to introduce other brands that would suit other segments of the Malawi market as it tries to close the gaps that exist in the beer market.

"We cannot just stay in the premium beer market. We have to also go to other segments for us to compete effectively in those areas," said Chikaonda.

However, Ministry of Industry and Trade Public Relations Officer Wiskes Nkombezi said government is not aware of a sole brewer agreement that existed with Carlsberg.

"I have checked our records. We do not have anything regarding that agreement," said Nkombezi.

12 December, 2012